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Spending cuts vs. tax evasion performance August 30, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.
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You are invited to read this very recent paper about the magnitude, sources and effects of tax evasion in Greece. Then, please contrast the magnitude of tax evasion with the following number on the new squeeze in spending. We have:

  • From the paper: “Foregone tax revenues are 16.3 billion euros, or 68 percent of the defcit for 2010 ” and tax evasion of this or about this magnitude happens every year!!! You will also find that their estimate of the unreported income is 41 billion euro – this is not and cannot be the rich man’s money alone, read the distribution of tax evaders on the paper.
  • From the new fiscal measures on reduced spending (in Greek): 11.6 billion euros – and this is a one-time only measure!!!
  • –> Difference in measure effectiveness of selecting to eliminate tax evasion for 2010 and doing the one-time fiscal squeeze in 2011 = 4.7 billion!!!

It makes you wonder…And yet, I ain’t talking about increasing taxes or not reducing spending where it should be done.  Stealing around from your neighbor though and then demanding many things for free just doesn’t sound right. At least in the US the have the decency to crack on domestic and international tax evasion – just remember who went after the unreport income in UBS – and then discuss how fiscal policy should be conducted.


Not just scandalous but an outrage! August 22, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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Ain’t me that’s saying that. Here is the article from Bloomberg and the closing paragraph: “Let’s put this in the starkest terms. In an effort to press Greece and others to mend their public finances, Germany’s government and its allies are making the euro system more fragile. To do this inadvertently would be scandalous enough, when you think of the risks to Europe and the world. To do it deliberately is an outrage.”

Free Textbooks Shaking Up Higher Education August 12, 2012

Posted by proeconomia in Main, On the crisis, Opinion, Science and technology.
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Great article from Time! Read it through, you have no excuses for not studying!

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